THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.

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JANE VELEZ-MITCHELL, HOST (voice-over): Tonight, a sensational settlement. New reports claim that Tiger Woods` alleged mistress No. 1, Rachel Uchitel, got $10 million in exchange for her silence. So what does she know that Tiger really doesn`t want anyone else to know?

And stomach-churning accusations that a 15-year-old girl allegedly pimped out her 7-year-old sister. Cops say the little girl was gang-raped by as many as seven men as her older sister looked on. Has our culture of violence left kids unable to distinguish between right and wrong?

Then, shocking details about Sandra Bullock`s marriage. A new report from Radar Online claims Sandra suspected her husband was cheating long before the details became public. And she confronted him. Plus, Sandra has been spotted for the very first time since the story broke. Is she preparing for divorce? And where was she going?

ISSUES starts now.

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VELEZ-MITCHELL: Just when you think the Tiger Woods sex scandal couldn`t get any more tawdry, an explosive expose hits the newsstands. I`ve been reading it all afternoon. It`s a long article.

Plus, tonight, TMZ drops a $10 million hush-money bombshell. TMZ now reporting Tiger made a $10 million confidentiality agreement with Rachel Uchitel, alleged mistress No. 1, because he was worried about the depth and detail of information she had.

Remember, the hush money speculation began when Rachel`s attorney, Gloria Allred, pulled the plug on a scheduled news conference at the last minute back in December. But the reported settlement didn`t stop Tiger`s other alleged mistresses from talking and talking and talking. Oh, my gosh.

This is a shocking spread in "Vanity Fair." It has sizzling details about the golf great`s alleged sexual encounters. One woman claims she had sex with Tiger all over the Florida home he shared with his wife, Elin. "Vanity Fair" reports a woman who ran an escort service claims Tiger had a, quote, "huge appetite" and claims he paid many tens of thousands of dollars for girls. Could Tiger have expected his sex scandal to continue escalating? When he spoke to ESPN in advance of his big golf comeback next week.

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UNIDENTIFIED MALE: Eleven months ago, here in Iowa, I asked you how well does the world know you? What`s your answer to that now?

TIGER WOODS, PROFESSIONAL GOLFER: A lot better now. I was living a life of a lie.

(END VIDEO CLIP)

VELEZ-MITCHELL: On Monday afternoon, Tiger will hold a press conference at the Augusta National Golf Club. What would you ask Tiger if you were a reporter at that news conference? I want you to call me and tell me: 1-877-JVM-SAYS. That`s 1-877-586-7297. Again, I want your questions for Tiger.

MIKE WALTERS, ASSIGNMENT MANAGER, TMZ: Well, you said it, Jane, $10 million settlement in the Tiger Woods/Rachel Uchitel situation. Now, you asked, what is it that Rachel knows that everybody else, all these girls, might not know?

Well, first of all I can tell you -- remember, Rachel was involved with Tiger that specific night where this whole thing started to unfold, right after the car accident. Remember, Rachel was the one talking to Tiger and had that relationship with him so close to where this whole thing started to spiral out of control.

I think -- and I`m told that this information about that night and the specific affair they had is what he really didn`t want anyone to know. And remember also, she was No. 1 in the beginning. I think Tiger thought maybe all this would go away. Guess what. It didn`t happen. And Rachel has been quiet since the settlement, but everybody else hasn`t.

VELEZ-MITCHELL: Well, what I don`t understand, Amy Palmer, senior editor, "InTouch Weekly," what value is it to have one young woman not talk when you`ve got some others who are talking? I mean, we can`t repeat most of the stuff in this "Vanity Fair" article. It is that graphic. Graphic about sex, alleged sex, locations of alleged sex, the kind of alleged sex. It`s graphic.

AMY PALMER, SENIOR EDITOR, "INTOUCH WEEKLY": Yes.

VELEZ-MITCHELL: What`s the point of having one girl stay quiet if the others are talking?

PALMER: Well, you know, I think that your other guest was correct. She was No. 1. I don`t mean No. 1, you know, the first woman to come out. I think Tiger and Rachel had a real relationship. I think they had a deep, intimate relationship, a connection. And I think that he was in love with her. "InTouch Weekly" had been reporting when we first broke this story that Rachel and Tiger were in love, and we believe that Tiger wanted her to be quiet because of that type of relationship.

VELEZ-MITCHELL: Interesting. Because I think that would actually almost legitimize it, at least someone could say, well, sometimes you fall in love with somebody outside of marriage, it happens. But the other stuff doesn`t seem like it`s going to be justifiable under any circumstances.

Now, one of the women who spoke to "Vanity Fair" magazine is waitress Mindy Lawton. She worked at a diner near Tiger`s Florida home. Mindy claims she had sex with Tiger all over his house. She said she was naked in his kitchen amid fine porcelain tile and brushed stainless-style appliances. Lawton said that Tiger wanted a last piece of booty before one tournament in 2007 to make him shoot better.

Lawton describes another time where he, quote, "pressed me up against his Escalade," end quote, after that encounter. Lawton told "Vanity Fair" she feared she and Tiger were spotted by "The National Enquirer." She says she texted Tiger that the magazine was onto them. Lawton says Tiger put her in contact with his agent, Mark Steinberg, who allegedly told her, quote, "We`ll take care of it." No comment from that agent tonight.

Now, my question to Gloria Allred -- I know you can`t talk about your clients, Rachel Uchitel and another client, as well, who alleges an affair with Tiger, but does the story of this waitress in "Vanity Fair," in your opinion, throw cold water on claims that people around Tiger, his whole team, knew nothing about his double life?

GLORIA ALLRED, ATTORNEY: Well, that`s right. I have no comment on my client, Rachel Uchitel, but I can comment on my client, Joslyn James, also known as Veronica McDaniels, who had a three-year romantic relationship with Tiger Woods.

And she also -- she recently released an e-mail from Brian Bell in which he appeared to be arranging travel for her. Brian Bell, of course, was the best friend of Tiger Woods, at least that`s the way Tiger Woods described him, from childhood. And in addition, had Tiger Woods Designs or Productions. So that -- I guess Brian Bell would be the one to explain why he was arranging travel for Joslyn to see Tiger Woods.

VELEZ-MITCHELL: Now, the "Vanity Fair" article also exposes Tiger as a man with conflicts about money. This waitress, Mindy Lawton, described Tiger as cheap. He, quote, "tipped 15 percent when paying with his black American Express card," and that he apparently bought her dinner only once ask, and that was a chicken wrap from Subway.

When it came to gambling, alleged mistress Jamie Junger said he was playing blackjack, probably 25,000 and above. There were also claims in this magazine that -- that are very explosive that Tiger spent tens of thousands of dollars for sex with girls.

Now, I want to go to Kendra Jade Rossi. You`re a former adult film star, and you are a recovering sex addict. When you hear about the claims -- and these are claims. And we always want to give Tiger Woods and his people the opportunity to respond.

KENDRA JANE ROSSI, MUSIC MANAGER: Right.

VELEZ-MITCHELL: By this woman who describes herself as a match-maker that she supplied -- she claims to "Vanity Fair" she supplied women to Tiger Woods and that he allegedly sometimes, according to this article in "Vanity Fair," paid tens of thousands of dollars for them, for a weekend. What do you hear as a recovering sex addict?

ROSSI: That`s so common here from me. I see that all of the time. But I...

VELEZ-MITCHELL: What do you mean? What do you mean you see that all the time?

ROSSI: Well, I mean, in Hollywood it`s very common. I see cheating men all the time. I see, you know, married men who are being very shady. It`s very common here.

VELEZ-MITCHELL: Paying tens of thousands of dollars for sex with a woman?

ROSSI: Well, that`s not as common, obviously. That`s a sign that his life has spun out of control. I mean, that`s another sign of addiction. He`s gambling. He`s -- you know, he`s doing all of these things that are completely out of control.

VELEZ-MITCHELL: So you buy the whole sex addict notion when it comes to Tiger? Because so many people don`t.

ROSSI: Absolutely. Absolutely. Because I think -- it`s one thing to have an extramarital affair and that`s one person that you`ve gotten into a relationship with, but like you`re seeing with Tiger and with other people in the news, you see all these women start to come forward and you see gambling and you see drinking or pills. I mean, this is a person whose life is out of control.

VELEZ-MITCHELL: And I will say, knowing about addiction myself -- today happens to be my 15th sobriety birthday. I`ve been sober 15 years today.

ROSSI: Congratulations.

VELEZ-MITCHELL: ... that getting away with it is also part of the addiction. Doing something edgy and dangerous and then getting away with it, it`s part of the adrenaline rush. And I don`t have a lot of time, but isn`t that correct, Kendra?

ROSSI: That`s absolutely right. And the more you get away with it -- but to me I also think that`s a cry out for help. When you start doing things that are so obvious. I mean, he`s flying these women around the world and he`s paying all kinds of money. And you know, you have to expect you`re going to get caught. And to me it sounds like somebody who`s crying out to get caught.

VELEZ-MITCHELL: Interesting. Perhaps subconsciously.

More on Tiger`s alleged costly sexual exploits in just a moment. And we`re taking your calls. What would you ask at the news conference on Monday to Tiger Woods? 1-877-JVM-SAYS, 1-877-586-7297.

Also ahead, a 7-year-old girl gang raped, passed around a party like a piece of meat. And police say her 15-year-old sister arranged the whole thing.

But first, sizzling new bombshells from Tiger Woods` alleged mistresses. Is it time for him to make another apology?

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WOODS: I was unfaithful. I had affairs. I cheated. What I did is not acceptable, and I am the only person to blame.

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WOODS: My behavior doesn`t make it right for the media to follow my 2-1/2-year-old daughter to school and report the school`s location. They staked out my wife, and they pursued my mom. Whatever my wrongdoings, for the sake of my family, please leave my wife and kids alone.

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VELEZ-MITCHELL: Tiger Woods, lashing out at the media.

Now shocking claims in "Vanity Fair" magazine. And by the way, this video is from their Web site of the photo shoot connected with explosive articles here in "Vanity Fair." Several women say they had flings with Tiger Woods. And some of it is too -- way too graphic to repeat on TV. Along with claims that he paid for sex many, many, many, many thousands of dollars.

Jocelyn, South Carolina, your question or thought, ma`am?

CALLER: yes. My comment is about all these women who keep coming out, talking about they slept with Tiger Woods. I mean, they`re really making themselves look bad. They knew he was married. He`s Tiger Woods. How could you not know he was a married man?

And by sleeping with someone else`s husband, you look like the bad guy. About the women who are saying that Tiger paid for sex, they should be on -- arrested for prostitution. I mean, you`ve got -- I mean, they admitted to it if he paid for the sex.

VELEZ-MITCHELL: Very good point. I don`t think that there`s only one person who has faced moral challenges in this very bad story. Mike Walters, TMZ, if you could ask Tiger a question at that news conference, what would be the question that you would ask him?

WALTERS: Bottom line, what is it that Rachel Uchitel knows about your situation, your relationship, or his wife or the day he crashed? What is it that she knows that you did not want everyone to hear so bad that it cost you $10 million, Tiger? Tell us about that. And I`d like to ask a lot of people that question. But I will ask Tiger Woods. Please tell us about that.

And do you think that you were going to get back into the golf game because of the Masters and be fine, and you`re going to be Kobe Bryant where no one remembers what happened to you a year from now?

VELEZ-MITCHELL: Listen to what Tiger -- good questions. That`s why you`re at TMZ, doing a good job. Listen to what Tiger Woods said about his marriage when he talked to ESPN a couple of weeks ago.

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UNIDENTIFIED MALE: How would you, in your own words, describe the depth of your infidelity?

WOODS: Well, just one is enough. And obviously, that wasn`t the case.

UNIDENTIFIED MALE: Why not seek treatment before all of this came out?

WOODS: Well, I didn`t know I was that bad. I didn`t know I was that bad.

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VELEZ-MITCHELL: Well, maybe after you read this "Vanity Fair" article, you`ll change your opinion of yourself, if there`s truth to it. I don`t know. I mean, it`s "Vanity Fair." It`s not us saying any of this. We can`t independently confirm all of these salacious stories.

Tiger Woods` former attorney gave a very different perspective to "Vanity Fair." Attorney John Merchant told the magazine he was convinced that Tiger`s marriage was for P.R. He said that Tiger`s people said, quote, "You cannot be what it is we are putting you in the position to be unless you have a wife and children," end quote.

You know, I just wonder how much more, Amy Palmer, can Elin take?

PALMER: You know, I have talked about this before. Elin comes from a family of divorce. OK. She grew up where her parents were separated. This obviously traumatized her.

So the reason why she`s staying with Tiger is because it`s playing into her own psychological issues. She doesn`t want to give her children that longing for a -- an impact family the way that she did. So while the world judges her for staying, she`s dealing with her own issues on how to keep this family together and if she can make that break and leave.

VELEZ-MITCHELL: Well, you know, Tiger is not the only one who has been scarred by scandal here. The Augusta National Golf Club has been under siege for its membership policy. In fact, the "New York Times" reports that, up until a year ago, they still didn`t have any women members, and now we hear reports that the journalists at Tiger`s Monday news conference will be hand-picked.

Here`s my big issue, Gloria Allred. Is it going to be business as usual as Augusta? Will Tiger get to play in a cocoon of protection and security, safe from any tough questions, safe from the big elephant in the room? And, if so, is that a case of orchestrated sexism? A slap in the face to the women that she`s been involved with, allegedly, and for that matter a slap in the face to all women?

ALLRED: Well, it is a slap in the face, Jane, that he has in the past played at Augusta and that, in fact, Augusta has been a sex-segregated club in terms of membership when he played there.

So one would think that a person who has expressed a sensitivity to racial discrimination would also be sensitive to sex discrimination and refuse to play at a club that was -- that excluded women in its membership. But he played there anyway.

Will the journalists be hand-picked? If so, then that`s going to create a lot of resentment among other journalists, because they will also want to ask questions and -- and they`ve been longing to do that. And some of the golf writers, in fact, boycotted the last news conference, because they wouldn`t be able to ask questions.

VELEZ-MITCHELL: And by the way, there are no women members at Augusta.

Stay right there. Coming up, we`re going to have more on this, and Sandra Bullock surfaces. The first picture since the scandal.

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JESPER PARNEVIK, FELLOW GOLFER AND INTRODUCED TIGER AND ELIN: Me and my wife are at fault for hooking her up with him. And we probably thought he was a better guy than he is then. And I would probably just have to apologize to her and hope she uses a driver next time than a three-iron, I would say.

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VELEZ-MITCHELL: That same golfer, who blasted Tiger when the scandal first broke, spoke to TMZ a couple weeks ago and said he thinks Tiger will do well at the Masters. But that was before all these new reports and this "Vanity Fair" article.

Joan, Virginia, your question or thought?

CALLER: First of all, Jane, I want to tell you I like your new hairstyle. You look beautiful with it.

VELEZ-MITCHELL: Well, thank you. Thank you so much.

CALLER: You look so pretty with it. Well, personally you look like a teeny-bopper. But anyway, I wanted to make a comment on Tiger Woods.

VELEZ-MITCHELL: Yes.

CALLER: His wife ought to sue every one of those women for breaking up her marriage.

VELEZ-MITCHELL: Well, Gloria Allred, you represent two of the alleged mistresses. What do you say to that?

ALLRED: Actually, I don`t comment on how many mistresses I`ve represented.

VELEZ-MITCHELL: OK.

ALLRED: But I will say this. That there are very few states in which a wife can sue another woman who had an affair with her husband. Recently in the south, it was either North or South Carolina, a wife did sue a mistress and won over $10 million on an alienation of affection lawsuit, but we don`t have that in California. So, no, a wife would not be able to sue a mistress.

VELEZ-MITCHELL: All right. Now this week, the "New York Post" is claiming another porn star, Devon Triple-X James is claiming to have had sex with Tiger. Now, that would make her No. 15. Then, Amy Palmer, we have the "Vanity Fair" hitting the newsstands with these explosive and graphic claims.

Is this a miscalculation to return to the world scene now and to participate in the Masters next week as the scandal continues to escalate?

PALMER: You know, the thing about Tiger is he`s a billion-dollar brand. OK. So he has a whole -- a whole industry around him that relies on Tiger actually playing golf. I mean, the numbers from the golf industry, you know, who say that him not playing in these major tournaments, how much it hurts them is enormous. So he has an obligation to step out there and show the world why he`s -- why he`s the No. 1 golfer.

However, I don`t think Tiger is aware of everything that`s going on behind the scenes with when these women are going to come out, when they`re going to be talking, if "Vanity Fair" is publishing all these articles. I mean, he has no idea. What he has to do is he has to come out, say, "I`m the No. 1 golfer in the world, and that`s how I`m going to try and get my life and my brand back together."

VELEZ-MITCHELL: Kendra, perhaps the most disturbing aspect of the "Vanity Fair" article is that, weaved into it, there are many, basically, claims or implications that there are still other women, that are other, other, other women. As a recovering sex addict, do you think that`s a reasonable claim on their part?

ROSSI: Yes, I`m betting there is. I told you this yesterday. I expect that there`s probably a ton more. You know, it`s a compulsion thing in his case. And so I expect that there are probably many, many women. And thankfully, most of them aren`t talking.

VELEZ-MITCHELL: As a recovering sex addict, just a couple of seconds, do you think, yes or no, is it a good idea for him to come back to professional golf at this juncture, Kendra?

VELEZ-MITCHELL: Stomach-churning accusations that a 15-year-old girl allegedly pimped out her 7-year-old sister. Cops say the little girl was gang raped by as many as seven men as her older sister looked on. Has our culture of violence left kids unable to distinguish between right and wrong?

Then shocking details about Sandra Bullock`s marriage; a new report from RadarOnline claims Sandra suspected her husband was cheating long before the details became public, and she confronted him. Plus, Sandra`s been spotted for the very first time since the story broke. Is she preparing for divorce? And where was she going?

Depraved and horrific -- it is the only way to describe a gang rape in Trenton, New Jersey. A 7-year-old girl -- we are talking about a 1st grader -- allegedly pimped out to a group of men and boys at a party. And the pimp was her 15-year-old step-sister. Trenton`s mayor is absolutely disgusted.

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MAYOR DOUGLAS PALMER, TRENTON, NEW JERSEY: I think everyone, not just in Trenton, New Jersey, but across this nation and the world is shocked, outraged and horrified by the barbaric act of monsters, monster-pervert- rapists.

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VELEZ-MITCHELL: Cops say the 15-year-old allegedly had sex with several men for money inside this public housing project and she reportedly told her little step-sister to play along, too. Cops say she watched the young men rape the little girl all the while collecting cash.

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CAPT. JOSEPH S. JUNIAK, TRENTON POLICE DEPARTMENT: The individuals that were in there took advantage of that to the point of a sexual assault, rape against a child, threatening to kill her if she screamed.

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VELEZ-MITCHELL: This is unbelievable. Cops are now scouring surveillance videos to identify the rapist. They range in age from 15 to 23 years of age.

So far, this one man, Gregory Joseph Leary, is under arrest for allegedly having sex with a 15-year-old. Cops are trying to figure out if he had anything to do with the attacks on the 7-year-old. Now, the 15- year-old girl has also been charged with aggravated sexual assault, promoting prostitution and other crimes and a prosecutor plans to charge her as an adult.

All right.

It`s just beyond comprehension. Yes, I am taking your calls on this.

Straight out to my fantastic panel: clinical psychologist Michelle Golland; Stacey Honowitz, who is the supervisor of the sex crimes unit in the Florida prosecutor`s office and author of the fabulous book, "My Privates are Private"; and Captain Joseph Juniak with the Trenton Police Department, joins us by phone with the latest details on this case.

We begin with investigative reporter, Michelle Sigona. Michelle, you`ve been studying this case, making calls. What have you got?

MICHELLE SIGONA, INVESTIGATIVE REPORTER: Well, I can tell you that the police, the mayor, council members; everyone in this community is completely outraged at this. Neighbors inside of this apartment complex, inside of the towers there, I can tell you that that particular building is extremely dangerous, Jane. Recently there was a shooting there. There have been home invasions; a lot of -- a place of a lot of criminal activity.

In addition, the police department`s focus right now is, number one, getting help for the 7-year-old and any means possible. And number two, figuring out all the suspects involved in this. She could have been raped from as many as seven different males inside of that 13th-floor apartment.

This apartment was actually unoccupied at the time. It appears that people living there had actually emptied out about a week before that. And it was a place that a lot of the folks -- a lot of the suspects, the 15-year-old and the 7-year-old allegedly went up and that`s where this party was held. There was actually drugs there and alcohol.

VELEZ-MITCHELL: Drugs. You mentioned one of the key factors in this kind of depravity; drugs and alcohol.

My big issue, pedophile pack mentality? Are all of these sickos who raped this 7-year-old girl, child sex predators? Or are they even beyond a pedophile? Are they just so lacking in any moral character whatsoever that they will just have sex with anyone?

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CAPT. JUNIAK: Somehow, some way, during those -- during the incident, the individuals that were in there feel that it`s okay at that point to start touching the 7-year-old.

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VELEZ-MITCHELL: Captain Juniak, we`re so delighted to have you on the phone. We know 27 residents of the apartment building were arrested this morning on outstanding warrants; that`s about 1 out of every 5 resident. So this building sounds like a magnet for trouble.

But what I can`t understand is how people who are not necessarily identified as pedophiles instantly make an agreement to do something so horrific to a 7-year-old child. Like why anybody would even want to do that if they are not a pedophile -- Captain?

CAPT. JUNIAK (via telephone): Yes, I agree. I mean, this is a horrid act. What occurred that evening with the 15-year-old and her 7-year-old step-sister, go to the apartment with the invitation to come to the party, with the 15-year-old having the idea of going ahead and having sex with numerous individuals. But what would even make you consider allowing them to touch your little sister? It turns your stomach.

Again, it`s a location where individuals were gathering. They utilized an apartment, a vacant building, go in, drink, use drugs. And while engaged in sex with the 15-year-old had the idea of touching the little girl which eventually --

VELEZ-MITCHELL: I mean -- and captain, you`re saying this quickly escalated from touching to a gang rape?

CAPT. JUNIAK: That`s what we believe. I believe at one point while the 15-year-old girl was engaged in the activity with the individuals, the idea came up to touch the 7-year-old and the sister allowed it.

VELEZ-MITCHELL: And was paid in return?

CAPT. JUNIAK: That`s what we believe, yes.

VELEZ-MITCHELL: Stacey Honowitz, drugs and alcohol. But particularly drugs can often deprive anybody of any kind of moral compass whatsoever.

STACEY HONOWITZ, AUTHOR, "MY PRIVATES ARE PRIVATE": You know what, Jane, you asked one of your panelists what do you think the mentality of these people are? You have a combination of pedophilia, sexual predator, also combined with a lack of any kind of morality.

I mean, that`s what you have. You have a combination of the two. You can never use drugs and alcohol as an excuse for this type of behavior.

The 15-year-old, who is primarily -- I hate to say this -- responsible for pimping out the sister should be charged and I think is charged with aggravated sexual battery.

But I think the bottom line is when you have juveniles like this who are preying on a 7-year-old girl they don`t understand what the consequences are going to be. And I think that`s because when we have horrific crimes like this, lots of times the punishment does not fit the crime. They`re juveniles and they get lesser sentences.

And I`m going to tell you that in our office, with the increase in crimes like this -- this isn`t the first time I`ve seen something like this -- these kids have to know they`re going to go to big-boy prison. Maybe take them into the prison for a day and let them see what they`re facing.

VELEZ-MITCHELL: Right. Yes. But you know what?

I understand but we can`t just lock up everybody. We have to also try to find out where is this hideous mentality coming from?

Now, check out some violent video games like "Rape Play." look at this sick game. It actually allows players to pretend to rape and abuse underaged women, okay? Amazon.com stopped selling it. Unfortunately, the Internet makes it easy for people to download it.

These are children who are downloading this garbage. This is where they`re getting some of the ideas as well as lack of any kind of parental guidance or boundaries, presumably.

Janita, Mississippi, your question or thought, ma`am?

JANITA, MISSISSIPPI (via telephone): Where were the parents of these two children? And did those -- did that happen to that 15-year-old? Maybe she`s doing what she`s taught.

VELEZ-MITCHELL: Joseph, captain?

CAPT. JUNIAK: Again, you know, the family does have some issues.

VELEZ-MITCHELL: What issues?

CAPT. JUNIAK: They have some behavioral issues with the 15-year-old. And just like many families throughout, it`s very dysfunctional. And the parents -- actually, called the police to report the children missing.

VELEZ-MITCHELL: Michelle Golland, you`re the psychiatrist.

MICHELLE GOLLAND, CLINICAL PSYCHOLOGIST: Yes, Jane.

VELEZ-MITCHELL: We need some help here because this is just blowing our minds.

GOLLAND: Right. Well, I have to say I completely agree with your guest, Stacey, on the assessment of these individuals.

And the other issue that is -- is out there, Jane, is the fact that they -- it`s not just that the juveniles aren`t prosecuted enough for sex crimes or for any of these crimes. As you know, we`re not prosecuting pedophiles enough -- adults enough.

So then you have these individuals that have a group mentality that they`re preying upon this child. They`re not so concerned about the jail time they`re going to get because they also see in the media that, you know, you can do something like this and you get six years. That`s part of the problem -- big part of the problem.

VELEZ-MITCHELL: Well you know, this is happening all over the country. We had a couple of cases right here on ISSUES that we covered. The mother of 5-year-old Shania Davis allegedly --

GOLLAND: Right.

VELEZ-MITCHELL: -- sold her child to a man to settle a drug debt -- there`s that little girl.

GOLLAND: Right.

VELEZ-MITCHELL: Then we had another case, a grandmother who was accused of selling her 10-year-old granddaughter to a neighbor on weekends.

GOLLAND: Right.

VELEZ-MITCHELL: Is there a -- like a moral almost vacuum that we`re living in, Michelle?

GOLLAND: You know, it seems that way and I think what we have to do is -- the previous caller asked, "Where are the parents?" And I think that`s really true. It`s about the parents. It`s about the community. It`s about how we value and do we value children in our society?

And if we look at the laws and we look at the punishment for crimes against children, what it says is that we don`t.

VELEZ-MITCHELL: All right. We have to leave it right there. Thank you so much. What a disturbing story. Thanks panel.

Up next, was John Gardner trying to be busted while he was on parole? Wait until you hear what Chelsea King`s alleged killer was doing online.

Plus, is Jesse James full of excuses. Hear his latest explanations for the photos of him in Nazi gear.

And I want to take your calls on the Sandra Bullock mess. It`s not her fault, it`s his fault I think and he admits that; 1-877-JVM-SAYS, give me a holler.

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UNIDENTIFIED FEMALE: Any guy who would risk venereal disease impregnating another woman, humiliating his wife, causing emotional distress to his children must have a screw --

(END VIDEO CLIP)

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VELEZ-MITCHELL: Sandra Bullock is finally out of hiding. But first, tonight`s "Top of the Block".

New outrage over alleged murderer John Gardner, he is accused of raping and killing 17-year-old Chelsea King in February. It turns out Gardner had a sexually graphic MySpace page while he was on parole years before Chelsea was killed. He was specifically barred from being anywhere near a computer. This is just one of the many, many violations that could have sent this guy, this sicko back to prison.

He served just five years for molesting and beating a 13-year-old girl back in the year 2000. It is long past time the whole country completely overhauls how we deal with these sex offenders. This is just the latest example.

And that is tonight`s "Top of the Block".

The Sandra Bullock/Jesse James drama reaches a boiling point. Is Sandra set on divorce? Tonight, the Oscar winner has come out of hiding for the very first time since this sex scandal broke. Well, sort of come out of hiding.

Take a look. Here she is. Here is the photo. Sandra snuck out of her house in this fascinating get-up. The star wore a giant floppy green hat and had an army of body guards blocking her face with umbrellas.

Necessary? Perhaps, but also a tad theatrical. Well, after all, she is an actress.

So, where did she go in that green floppy hat? TMZ says she drove straight to the home of a billionaire private investor. Is that a clue, is Sandra trying to protect her wealth?

Her movies like "Miss Congeniality" and the "Blind Side" and "The Proposal" have made her one of the 20 richest women in Hollywood? Could Jesse get a large chunk of her money if they do divorce?

Plus, more dramarama from Jesse: breaking news -- he has just been cited for vandalism after an incident last week with a photographer. Jesse allegedly went to town on the car of the paparazzi who had been stalking him.

Brand new reports: did Sandra know her husband was cheating on her? Was she blindsided or did Sandra turn a blind eye? If so, she really is a great actress.

(BEGIN VIDEO CLIP)

UNIDENTIFIED MALE: But what`s it like basically to be able to make a tough guy like that cry on national television? He was -- he was tearing up right in front of -- the world.

SANDRA BULLOCK, ACTRESS: Did you cry? He doesn`t cry. He doesn`t cry. No he doesn`t --

UNIDENTIFIED MALE: Oh, he cried. We all saw it.

BULLOCK: -- he`s right there. Don`t piss him off. He had something in his eye.

(END VIDEO CLIP)

VELEZ-MITCHELL: All right. He might be crying now.

Straight out to my fantastic expert panel: back with us, former adult film star who was treated for sex addiction on VH1`s "Sex Rehab with Dr. Drew," Kendra Jade Rossi.

KENDRA JADE ROSSI, FORMER SEX ADDICT: Yes, hi.

VELEZ-MITCHELL: Also still with us, famed attorney who is representing one of Jesse James alleged mistresses, Gloria Allred; as well as Amy Palmer, senior editor for "In Touch Weekly". Amy, what`s the latest?

AMY PALMER, SENIOR EDITOR, "IN TOUCH WEEKLY": The latest is that Sandra Bullock is definitely in L.A. You know, she was in Austin, Texas after the story broke. And "In Touch Weekly" did break the story two weeks ago.

Sandra Bullock now is, you know, meeting with advisers. She`s surrounded by friends and family.

While Jesse James took himself to sex rehab in a last-ditch attempt to save his marriage.

And I have to tell you, Jane, I`m getting really tired of reporting on celebrity men who think it`s a get out of jail free card to have sex and cheat on your wife and then just go to rehab and think everything is going to be ok.

VELEZ-MITCHELL: Well, I`m sure Kendra who believes that he is a sex addict, will have something to say about that, Kendra.

ROSSI: Yes. I mean, I do think that -- I do think that he has a problem, obviously. Look at his life. And look at what he`s destroyed.

VELEZ-MITCHELL: Yes. I mean --

ROSSI: You know, look -- he`s got kids and a wife. And I think everybody is forgetting there are kids involved here, you know?

VELEZ-MITCHELL: But is there -- is there a type of rehab for jerks like jerk anonymous or jerk rehab?

ROSSI: Well, listen.

(CROSSTALK)

VELEZ-MITCHELL: I mean, how do we know if he`s a sex addict or if he`s just a jerk? So you`re saying every addict is a jerk?

ROSSI: Every addict is a jerk.

VELEZ-MITCHELL: You`re right.

ROSSI: Yes, I mean, you know what?

VELEZ-MITCHELL: She`s right.

ROSSI: When you`re addicted and you act out and you act like a jerk. But I think that there are some people, if they want it that can attain a better life for themselves and can attain sobriety if you want it.

VELEZ-MITCHELL: You make a good argument. Every addict is a jerk and a liar, absolutely. Sandra is --

ROSSI: We do things we wouldn`t normally do.

VELEZ-MITCHELL: Exactly. Sandra is ranked number 14 on the Forbes list of the top 20 richest females in entertainment with a cool $85 million in the bank. And a lot of Sandra`s huge hits like "Blind Side" which took in the number one spot in DVD sales and rentals this past week and "The Proposal," she made while she was married to Jesse James.

So Gloria Allred, explain all this. California is a no-fault 5050 divorce state. Even if Jesse is a complete cad and a jerk, could he end up walking away with millions of dollars in essence, getting paid for his infidelity?

GLORIA ALLRED, REPRESENTS ALLEGED JESSE JAMES MISTRESS: Well, Jane, you are in a sense right because we are a community property state. And in this state, we have no-fault divorce, which means the fact that he has apparently lied to his wife and -- and apparently has admitted to numerous extramarital relationships, that will not be a factor in how much he is able to have and get in a dissolution of marriage. It will not be relevant whatsoever.

VELEZ-MITCHELL: Well, I don`t get that then. So he can be the reason?

Now, what about this? Radar Online is reporting they got into four or five blowouts and he denied everything. In other words they are reporting that Sandra wasn`t totally clueless that she suspected that Jesse was cheating.

Will that factor into the divorce or will it just be a simple question of whether or not she had a pre-nup?

ALLRED: Well, there is a question of whether there`s a pre-nuptial agreement. If so, then that means the parties agreed to what they would get if the marriage dissolved or if, for example, one of them died.

VELEZ-MITCHELL: All right. We`ve got to leave it --

ALLRED: They can get less from a pre-nup than they would in --

(CROSSTALK)

VELEZ-MITCHELL: More after the break. We`re going to come right back to you, Gloria, after the break.

(COMMERCIAL BREAK)

(BEGIN VIDEO CLIP)

SANDRA BULLOCK, ACTRESS: I just became more selective and had, you know, all I had was work before. That was my family until I had a family. And I realized work became number two; by elimination of certain things, my work became better.

(END VIDEO CLIP)

VELEZ-MITCHELL: Tonight, Sandra Bullock goes out in public for the very first time since multiple women have come forward claiming to have had sexual relationships with her husband, Jesse James. TMZ reporting she went to the home of a billionaire private investor. Could Sandra be worried about her fortune?

Gloria Allred, will it all boil down to whether or not she has a pre-nup that says if you cheat, you get nothing.

ALLRED: Well, it may be that it doesn`t say that, but Jane, it may say exactly how much each gets if there`s a dissolution of the marriage. And then there`s also the question of the little girl, Jesse`s little girl that she -- that he got custody of and Sandra has been parenting apparently very, very well, being a great parent to her.

Is she going to get visitation with that little girl if they divorce? And in California, she may have a right to visitation. And she definitely will get visitation if the biological mother and Jesse agree that it`s in the best interest of that child.

VELEZ-MITCHELL: But if she doesn`t have -- quick question, because I have a couple of other issues. But quick question, if she doesn`t have a pre-nup, this guy is going to walk away with a lot of money? Is that pretty much yes?

ALLRED: Yes, if, in fact, it`s marital property, yes. And of course, they have a long marriage for California, four or five years is a long marriage for California, a short marriage in other places. But yes, he could stand to get quite a bit in the divorce.

VELEZ-MITCHELL: That just makes my blood boil.

Now, Jesse`s attorney is calling for people to leave Jesse alone already. Maybe he needs to check out this guy, YouTube.

(BEGIN VIDEO CLIP)

UNIDENTIFIED FEMALE: Leave Britney alone. Please. All you people care about is readers and making money off of her. She`s a human.

(END VIDEO CLIP)

VELEZ-MITCHELL: All right. Dean, New York, your question or thought?

DEAN, NEW YORK (via telephone): I`m not sure how to follow that, but I`m going to do my best. Sandra Bullock should show Jesse James the door. You know, if Jesse James was any normal guy, he would not even get the benefit of the doubt. He wouldn`t even be questioned about having a sex addiction. So guys like him and Tiger Woods --

VELEZ-MITCHELL: Yes. Well, we`ve got to leave it right there, Dean from New York. But I`ve got to say, she -- we suspected, ok, according to Radar Online, Kendra Rossi, Sandra suspected Jesse was cheating.

Here`s a quote from Radar Online. A source tells us they got into four or five blowouts over it and every time he denied everything. Isn`t it true of a sex addict or any kind of addict that what they are more than anything else is liars, and very good liars.

ROSSI: Really great liars. Yes, you have to be, right? And so I expect that they -- as a woman, you kind of inherently know if that person that you love is doing, you know, shady things. I think you kind of feel it in your gut. I wouldn`t be surprised if she had that feeling but I know that --

VELEZ-MITCHELL: Amy Palmer, ten seconds, is her career going to benefit from this? Or will it hurt her?